With a mix of both stable developed markets and emerging economies, the European region makes up one of the most diverse economic zones in the world. Large volumes of foreign direct investment and high commodity prices have ensured that emerging markets in regions like the Mediterranean and Eastern Europe have continued to grow at a fast pace. At the same time developed markets are on the verge of recovering from the global economic crisis. European mutual funds tap into the unique strengths of this vibrant region and are a natural choice for those seeking to grow their investments.
Below we will share with you 4 top rated European funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect the fund to outperform its peers in the future. To view the Zacks Rank and past performance of all European funds, then click here.
U.S. Global Investors Eastern European (EUROX) seeks long term capital appreciation by investing in securities issued by companies from Eastern European countries, focusing on emerging markets in the region. These securities include common and preferred stock, convertible securities and depository receipts. It is non-diversified and invests at least 25% of its assets in companies in the oil, gas or banking sector. It is a no-load fund.
This European fund returned 78% in the last year and has a ten year annualized return of 14.08%.
Fidelity Nordic (FNORX) invests at least 80% of its assets in Danish, Finnish, Swedish and Norwegian securities. It may also invest a smaller proportion in securities from countries apart from these. This European fund returned 47.5% in 2009.
The European fund has a minimum initial investment of $2500 and an expense ratio of 1.15% compared to a category average of 1.72%.
Henderson European Focus A (HFEAX) seeks long-term capital growth by investing primarily in European companies. It invests in companies with a wide range of market capitalizations and focuses on stocks with the potential for capital appreciation. The fund has a five year annualized return of 10.59%.
As of December 2009, this European fund held 59 issues, with 3.73% of its total assets invested in Centamin Egypt Ltd.
T. Rowe Price Emerging Europe and Mediterranean (TREMX) seeks capital appreciation by investing the majority of its assets in emerging European markets. This would include countries in the Mediterranean region, including the Middle East and North Africa as well as those that make up the former Soviet Union. It is non-diversified and concentrates primarily on large-cap companies, with a weaker emphasis on medium-sized firms. The fund returned 125.13% over the last one year period and has a five year annualized return of 10.6%.
S Leigh Innes is the fund manager and has managed this European fund since 2007.
To view the Zacks Rank and past performance of all European funds, then click here.
About Zacks Mutual Fund Rank
By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Learn more about the Zacks Mutual Fund Rank at http://www.zacks.com/funds/mutualfund/
